How Presale Deposits Work in BC
On a BC presale you don't pay the full price up front — you secure the home with staged deposits that are held in trust by law. Here's how the schedules work, where the money sits, and when it comes back.
Reviewed July 28, 2026 · Facts cited to CRA, BC government and BCFSA sources below
How much is a presale deposit in BC?
Total deposits on a BC presale are commonly 10% to 20% of the purchase price, paid in stages rather than up front. A typical schedule looks like: an initial amount when you sign (often 5%, sometimes payable just after the 7-day rescission period ends), a second instalment a few months later, and further payments tied to dates or construction milestones. Every project sets its own schedule — it's spelled out in the purchase agreement and the disclosure statement, and it's often negotiable ground during promotions.
The life of a presale deposit
- 1
Sign the purchase agreement
The initial deposit (often 5%) is written — sometimes payable only once the rescission window closes.
- 2
7-day rescission window
Cancel for any reason and every dollar comes back — no fee, no negotiation.
- 3
Staged instalments
Further payments at set dates or construction milestones, commonly reaching 10–20% in total — all held in trust under REDMA.
- 4
Completion
Deposits are credited against the purchase price; you pay the balance and get the keys.
Where is my deposit held?
Presale deposits in BC are held in trust under the Real Estate Development Marketing Act (REDMA)— usually by the developer's lawyer, notary or a real estate brokerage. The developer can't simply bank your money: it stays in trust until the sale completes, unless the developer has arranged deposit protection insurance, which is the one route REDMA allows for using deposits to fund construction while keeping buyers protected.
When do I get my deposit back?
You get your deposit back in full if you rescind within the 7-day cooling-off period (see our rescission guide), or if the developer cancels the projector fails to complete it as the agreement and REDMA require. The reverse also holds: if you walk away from a firm contract after the rescission period, the deposit is generally at risk of forfeiture to the developer. If everything goes to plan, the deposit isn't "spent" at all — it's credited against your purchase price at completion.
Why deposit structure matters when comparing projects
Two projects at the same price can demand very different cash timelines: 5% now versus 15% over six months changes how much money is locked up — and for how long — years before you get keys. Developers also compete on deposits during slower markets, so a low or extended deposit schedule is often the most valuable incentive on the table. Deposit terms for each project are in its disclosure statement; verify the current schedule directly with the sales team before writing an offer.
Common questions
How much is a typical presale deposit in BC?⌄
Total deposits on a BC presale commonly add up to 10%–20% of the purchase price, paid in instalments rather than all at once — for example 5% when you sign (or shortly after the 7-day rescission period), with further 5% payments at set dates or construction milestones.
Is my presale deposit safe if the developer cancels the project?⌄
Presale deposits in BC must be held in trust under the Real Estate Development Marketing Act (REDMA). If the developer cancels the project or fails to complete it as required, your deposit is returned to you from that trust.
Do I lose my deposit if I back out of a presale?⌄
Within the 7-day rescission period you get every dollar back, no reason needed. After that, walking away from a firm contract generally puts your deposit at risk of forfeiture to the developer — the deposit exists to secure your obligation to complete.
Can the developer spend my deposit on construction?⌄
Only if the developer has deposit protection insurance in place. REDMA lets a developer use deposits for construction costs only under a deposit protection contract with an insurer, which keeps buyers covered if the project fails.
What happens to my deposit at completion?⌄
Your accumulated deposit is credited against the purchase price at completion. If you paid 15% in deposits, you owe the remaining 85% (plus GST and closing costs) when the home completes and title transfers.
Sources
This guide is general information, not tax or legal advice. Rules change and individual situations differ — confirm your own eligibility with the Canada Revenue Agency, the Province of BC, or a professional advisor before relying on any figure here.
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